Larry Summers and the Peter Principle

Townhall.com ^ | October 30, 2011 | Mike Shedlock

[Kaslin]

The absurd comment of the week goes to Larry Summer for his statements on the irony of the financial crisis.

The central irony of financial crisis is that while it is caused by too much confidence, too much borrowing and lending and too much spending, it can only be resolved with more confidence, more borrowing and lending, and more spending. Most policy failures in the United States stem from a failure to appreciate this truism...

Anyone who thinks the cure is the same as the disease (as Larry Summers clearly does) is incompetent (at best).

I found the reference when Zerohedge posted the Summers link with no comment. I suspect the Summers comment was so asinine that ZH did not even see a need to state it. Because he did not comment, I will.

Peter Principle in Action

Larry Summers may be one of the best examples of the Peter Principle that you can ever find.

However, I suspect a case can be made that Summers did not rise to his level of incompetence, that he was never competent in any position, ever, and that he got where he is out of sheer luck, birthright  or some combination thereof.

Jim Chanos Says China Slowdown has just begun.

There is not much new in the video actually. I just happen to think he is correct.

The link came in an email I played while stuck in an airport on a plane delay back to Chicago.

URL if video does not play: http://www.macrobusiness.com.au/2011/10/chanos-china-slowdown-just-beginning/

[humblegunner]

Wasn’t Larry Summers the goofy sidekick on “Three’s Company” who was secretly married to Chrissy?

[litehaus]

His whole administration is composed of PP winners from their respective fields.....Like sptimes down here, a dang herd of satraps in tbeir sinecures.....

[litehaus]

His whole administration is composed of PP winners from their respective fields.....Like sptimes down here, a dang herd of satraps in tbeir sinecures.....

[litehaus]

His whole administration is composed of PP winners from their respective fields.....Like sptimes down here, a dang herd of satraps in tbeir sinecures.....

[litehaus]

His whole administration is composed of PP winners from their respective fields.....Like sptimes down here, a dang herd of satraps in tbeir sinecures.....

[litehaus]

His whole administration is composed of PP winners from their respective fields.....Like sptimes down here, a dang herd of satraps in tbeir sinecures.....

[litehaus]

His whole administration is composed of PP winners from their respective fields.....Like sptimes down here, a dang herd of satraps in tbeir sinecures.....

[DJ MacWoW]

Click The Pic

As a very important source of strength and security, cherish public credit. One method of preserving it is to use it as sparingly as possible: avoiding occasions of expence by cultivating peace, but remembering also that timely disbursements to prepare for danger frequently prevent much greater disbursements to repel it; avoiding likewise the accumulation of debt, not only by shunning occasions of expence, but by vigorous exertions in time of Peace to discharge the Debts which unavoidable wars may have occasioned, not ungenerously throwing upon posterity the burthen which we ourselves ought to bear.
George Washington

[SunkenCiv]

Thanks Kaslin.

Anyone who thinks the cure is the same as the disease (as Larry Summers clearly does) is incompetent (at best).

[lentulusgracchus]

You don't have to hold the button down to get it to post.

[chuckee]

“Anyone who thinks the cure is the same as the disease (as Larry Summers clearly does) is incompetent (at best)”

Hair of the dog economics,a specialty of Democrats.